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I try to avoid anything that would lead to debt, most people would too yet even though credit cards fall in this category; it remains one of the most popular means of payment. Why?
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189 reads
If you don’t have a credit history, you won’t have a good credit score. A credit score is a number that rates your credit risk. Creditors use it to determine whether to give you credit and what terms to offer you. Having a high score can make it easier for you to get a loan, rent an apartment, or lower your insurance rate. Having a properly managed credit card increases your credit score.
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If you need to buy something and you don’t have the cash on hand. A credit card can be a very expensive type of loan but circumstances can make it difficult to ignore.
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With a credit card you can get cash back on your purchases, airline points, discounts, coupons and more. These rewards are not available for Debit card users
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Most credit cards can be used internationally and online, whereas cash and bank cards often cannot, you’d have to use some form of currency exchange or maybe PayPal (if it’s an option).
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For some transactions providing a credit card is compulsory. For instance, hotel reservations or car rentals may require that you submit a credit card as this would ensure that whatever extra costs you run up can be easily recovered.
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Writer, artist, Accountant and a forever learner. Learning, loving, Hoping.
These ideas help to understand why credit cards remain a popular means of payment despite being a form of debt.
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